Barington Capital Group Statement on Matthews International's Sale of SGK Brand Solutions

Rhea-AI Summary

Barington Capital Group, owning approximately 1.9% of Matthews International (NASDAQ: MATW), has issued a statement regarding Matthews' planned sale of its SGK Brand Solutions segment. The activist investor highlighted that since 2022, they have been advocating for Matthews to simplify its portfolio, specifically proposing the sale of SGK, which has resulted in a write-down of more than $266.2 million under Matthews' ownership.

While Barington welcomes the sale decision, they note it came only after their calls for changes to Matthews' management and Board of Directors. The investor believes this transaction demonstrates available value-creating opportunities and emphasizes the importance of having Barington's nominees on Matthews' Board to bring fresh perspectives and expertise in finance, corporate strategy, and turnaround management.

Positive

• Planned sale of underperforming SGK Brand Solutions division
• Strategic portfolio simplification initiative
• Potential for improved company focus and operational efficiency

Negative

• $266.2 million write-down on SGK Brand Solutions segment
• Poor historical performance of SGK division

NEW YORK, Jan. 8, 2025 /PRNewswire/ -- Barington Capital Group, L.P. ("Barington Capital") and certain of its affiliates (collectively "Barington" or "we"), a fundamental, value-oriented activist investor that beneficially owns approximately 1.9% of the outstanding common stock of Matthews International Corporation (NASDAQ: MATW) ("Matthews" or the "Company"), today issued the following statement in response to Matthews' planned sale of SGK Brand Solutions ("SGK"):

"Since 2022, Barington has urged Matthews to simplify its portfolio. Indeed, Barington has repeatedly proposed the sale of the Company's SGK segment, a poorly performing business that has resulted in a write down of more than $266.2 million under the Company's ownership. While we are pleased that the Company is taking this step today, it is unfortunate that it occurred only after Barington called for changes to Matthews' management and Board of Directors.

"We believe the SGK transaction not only highlights one of the many value-creating opportunities available to Matthews' shareholders, but also the importance of having Barington's nominees on the Matthews Board. We believe our nominees, if elected, will bring the fresh perspectives, as well as the financial, corporate strategy and turnaround expertise, that Matthews requires to maximize shareholder value."  

For additional information regarding Barington's campaign at Matthews, visit: https://barington.com/matthews 

ABOUT BARINGTON CAPITAL GROUP, L.P.

Barington Capital Group, L.P. is a fundamental, value-oriented activist investment firm established by James Mitarotonda in January 2000.  Barington invests in undervalued publicly traded companies that Barington believes can appreciate significantly in value when substantive improvements are made to their operations, corporate strategy, capital allocation and corporate governance.  Barington's investment team, advisors and network of industry experts draw upon their extensive strategic, operating and boardroom experience to assist companies in designing and implementing initiatives to improve long-term shareholder value.

Media Contact:
Jonathan Gasthalter/Amanda Shpiner
Gasthalter & Co.
212-257-4170

View original content:https://www.prnewswire.com/news-releases/barington-capital-group-statement-on-matthews-internationals-sale-of-sgk-brand-solutions-302346273.html

SOURCE Barington Capital Group, L.P.

FAQ

What is the value of the write-down Matthews International (MATW) took on SGK Brand Solutions?

Matthews International took a write-down of more than $266.2 million on the SGK Brand Solutions segment under their ownership.

What percentage of Matthews International (MATW) does Barington Capital own?

Barington Capital owns approximately 1.9% of Matthews International's outstanding common stock.

When did Barington Capital begin urging Matthews International (MATW) to sell SGK?

Barington Capital has been urging Matthews International to sell SGK since 2022.

What changes does Barington Capital want to implement at Matthews International (MATW)?

Barington Capital is seeking changes to Matthews' management and Board of Directors, proposing to add their nominees to bring fresh perspectives and expertise in finance, corporate strategy, and turnaround management.